What are investors really looking for in a cannabis company? Is it product variety, impressive production scales, ability to close deals or could it be balanced sheets?
A new movement is growing for inquisitive investors evaluating the companies with a strong and authentic brand under their corporate umbrella.
A recent report by Eight Capital analyst Daniel Pearlstein asked investors in the sector to think bigger with the way they see these companies and let go of obsessing over “farming and oversimplified capacity based metrics.”
“We encourage investors to think broader and think of cannabis as an ingredient,” Pearlstein wrote in his February 5 research note.
Pearlstein wrote consumers make decisions based on brands in other markets like the tobacco and alcohol industry. He added that approach is coming to the cannabis market. “Soon cannabis and derivative products will go from mostly being defined by the literal description of the product to being described by origin, quality, and experiences,” Pearlstein wrote.
Investor sentiment is changing when it comes to brands
Steven Feldman is an active cannabis investor and serves as a co-founder and director of Liberty Leaf Holdings (CSE:LIB). He also manages the popular @CanadaPotStocks Twitter account, which comments on developments throughout the public markets.
Feldman told the Investing News Network (INN) investors are starting to become more interested in the impact a brand will have on their stock selections.
He explained that shareholder interest in a company’s production metrics has passed; instead, investors are now asking which company has a more appealing brand. “I don’t think investors are currently looking to see who is going to be the biggest [or] who is going to grow the most. I think they are looking at it now as a retailing business,” he said.
Feldman said one of the main branding opportunity for companies comes from lifestyle brands, displaying the experience of consuming recreational product.
“The LPs (licensed producers) want to have a retail presence because they feel they can get the margin uplift by associating those stores and the products with their brand and that consumer choice,” Feldman said. He added there will be a benefit for LPs owning a retail experience in the form of a potential premium margin.
Companies react to new interest in cannabis branding
But just how much will investors care for the brands a cannabis company holds or the reach of their brands with consumers. One CEO, who has bet heavily on brands and views cannabis as a consumer product says ultimately it will become one of the only metrics.
The focus on branding has been the area of interest for a few other companies in the public space including Newstrike Resources (TSXV:HIP) a company that earned a public partnership with the Canadian rock band The Tragically Hip. As part of its emphasis on this area, the company launched a particular lifestyle brand called Up Cannabis.
Feldman told INN some of the newer companies he has seen join the public space focused on the consumption and retail experience, like the recently launched Choom (CSE:CHOO; OTCQB:CHOOF), are already downplaying their production numbers and instead “focusing more on that lifestyle or the brand.”
The pressure to be aware of new customers trying products for the first time –with legal recreational use in mind–has reached some of the biggest companies in the public market.
In February, MedReleaf (TSX:LEAF) unveiled its attempt at attracting fanatic cannabis consumers. The company’s lifestyle brand was named San Rafael ’71 and its launch was accompanied by a product–a beer with no connection to marijuana except by name.
“San Rafael ’71 4:20 Pale Ale does not contain any cannabis, but it will take you back to where it all began and introduce Canadians to the spirit of adventure, exploration and freedom at the heart of 4:20,” Darren Karasiuk, vice president of strategy at MedReleaf said as part of the announcement.
It will be critical for shareholders to monitor the traction of these various brands, as some may appear out of touch or unauthentic to the consumers.
“I think authentic brands are what’s incredibly important in this market and it’s proven throughout time that large companies struggle with creating authentic brands,” Gertner said.
The race for consumer popularity could be tamed by government regulations
While companies in this space get ready their proposals to recreational consumers, the Canadian federal government is still evaluating what will and won’t be allowed in terms of advertising, packaging, and marketing.
Deepak Anand, vice president of government relations with consulting firm Cannabis Compliance, told INN the Cannabis Act will need to pass the Senate before companies know the exact marketing regulations in place allowed in this industry.
“It is expected that much of the advertising and marketing restrictions proposed in the Act will be part of the regulations in terms of plain packaging, unappealing to kids, limits on branding including no celebrity endorsements, etc.,” Anand said.
Depending on where the government falls in terms of how much a company will be allowed to express their brands and the value of their products, Feldman told INN companies might have to get creative with their methods.
Feldman suggested public companies can promote their brand through their own name and– depending on prices of the day–their stock.
Cam Battley, executive vice-president with Aurora Cannabis (TSX:ACB; OTC:ACBFF), told the CBC it made sense for the government to allow cannabis companies to state who they are and establish their brands as an efforts to combat the illegal market.
Update on government plans for packaging of cannabis products
On March 19 the Canadian federal government released a report revealing the requirements it proposes for companies to add on their legal cannabis products, including health warnings, information from the actual LP, and other specific items of information. The government’s report offered a visual sample of what products could look like, the packaging proposed by the government is not final.
— Bryan Mc Govern (@McGbryan) March 19, 2018
“An evidence-informed, public health approach is being taken to the requirements for packaging and labelling of cannabis products to minimize their appeal to children and youth, protect against accidental consumption, and help inform consumers of the risks and harms of cannabis use,” the government said in a statement.
The Minister of Health Ginette Petitpas Taylor said the packaging and labeling measurements taken by the government are meant to ensure cannabis products are “out of the hands of children and youth.”
Brands will separate companies once demand is satisfied
The Canadian cannabis market is expecting to meet a product shortage during the initial legalization period of recreational products. Once that gets cleared, in the long term brands could become a key for consumers to differentiate between the various LPs in Canada.
Research data from GMP Capital showed a projection of supply meeting demand in Canada faster than they had previously expected, to the point where researchers expect an oversupply by 2020.
Gertner said with the current spending trends of the industry the oversupply further reinforces the level of importance for companies to hold a strong brand “in order to maintain margin.”
During the Canaccord Genuity Cannabis Investor Day Conference in January, Marc Lusting CEO of CannaRoyalty (CSE:CRZ: OTCQX:CNNRF), encouraged the room of investors to look beyond growing capacities slides and greenhouse pictures from other companies. He said the focus for his company was in the consumer product itself.
Shareholders are being asked to think bigger when it comes to evaluating cannabis companies, meaning it will be crucial for the market to monitor how much importance does the investor audience gives to the experience a company is selling, compared to how many tons of marijuana it can produce.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: HIKU Brands is a client of the Investing News Network. This article is not paid-for content.
Ayurcann Holdings Corp. (CSE: AYUR) (the “Company” or “Ayurcann”) an integrated Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, announces the granting of stock options and restricted share units.
The Company has announced that it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase an aggregate of 1,000,100 common shares under the Company’s Stock Option Plan. Each option is exercisable at a price of $0.16 per common share, expires three years from the date of grant and vest six months from the date of the grant.
The Company has also granted restricted share unit grants, pursuant to the Company’s Restricted Share Unit plan, dated April 1, 2021, totaling 1,548,875 to certain eligible participants.
For further information, please contact:
Igal Sudman, Chairman, Chief Executive Officer and Corporate Secretary
Ayurcann Holdings Corp.
About Ayurcann Holdings Corp.:
Ayurcann is a leading post-harvest solution provider with a focus on providing and creating custom processes and pharma grade products for the adult use and medical cannabis industry in Canada. Ayurcann is focused on becoming the partner of choice for leading Canadian cannabis brands by providing best-in-class, proprietary services including ethanol extraction, formulation, product development and custom manufacturing.
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
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A planned business merger between two leading cannabis producers hit a small delay this week as a critical vote got moved.
Keep reading to find out more cannabis highlights from the past five days.
Tilray delays critical shareholder meeting
On Thursday (April 15), Tilray (NASDAQ:TLRY) announced it will be postponing its shareholder vote on the fate of its merger with Aphria (NASDAQ:APHA,TSX:APHA). It will take place on April 30 instead of April 16.
Neither cannabis company offered an explanation for the change. Tilray has asked shareholders to participate in this vote regardless of how many shares they may hold. “Tilray stockholders who have not already voted, or wish to change their vote, are strongly encouraged to do so,” the company said.
This news came days after Aphria shareholders overwhelmingly voted in favor of the business transaction, with a total of 99.38 percent of shareholders voting for the deal to continue. Confirmation from Aphria Chairman and CEO Irwin Simon indicated the partnership was en route to being complete.
This past week Aphria also released financial results for the third quarter of its 2021 fiscal year, in which the firm highlights the overall direction of the company with the Tilray deal.
“We expect to have a tremendous runway for long-term sustainable growth as we build upon our existing foundation in Canada and internationally by increasing the scale of our global operations,” Simon said in a statement.
Cannabis retailer celebrates digital trend
Bidding for the piece, named “Non-Fungible Toke“ started at a price of C$4.20. The retailer plans to donate the proceeds to two charities, Second Harvest and Less.
The latter is designed to counter the carbon footprint of blockchain technology, a common criticism drawn against the rise of NFTs and other novel technologies.
As of 11:00 a.m. EST on Friday (April 16), the NFT bid was up to C$169.11.
Cannabis company news
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) issued its financial report for the first quarter of its 2021 fiscal year. In its results, the company highlights a net revenue uptick of 24.7 percent from the previous quarter, resulting in C$20 million for the period.
- Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF) closed a public offering of 5 million subordinate voting shares at a price of C$50 each for total gross proceeds of C$287.5 million. The company celebrated its financial position after an offering in January, which will lead to the pursuit of merger and acquisition targets.
- Australis Capital (CSE:AUSA,OTCQB:AUSAF) appointed Jason Dyck as its new chief science officer and chairman of the firm’s scientific advisory board. Dyck previously served as an executive at Aurora Cannabis (NASDAQ:ACB,TSX:ACB), leading the scientific efforts for the cannabis producer. “I look forward to providing AUSA with advice and direction in its scientific efforts towards bringing innovations to market with immediate and significant commercial appeal,” Dyck said.
- Truss Beverage, a cannabis drinks venture co-owned by Molson Coors Beverage Company (NYSE:TAP,TSX:TPX) and HEXO (NYSE:HEXO,TSX:HEXO), released the details of its new lineup of infused beverages. Six new drinks will become available around the summer and are intended to pair with the season.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Partnerships with Minardi Law , Minorities for Medical Marijuana, CultivatED, and the Georgia Justice Project will include clinics and virtual events across Florida , Georgia , and Massachusetts
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today a series of expungment clinics located throughout south and central Florida as well as virtual events in Georgia and Massachusetts . The clinics are part of the Company’s celebration of the 50 th anniversary of 420.
During the month of April, Minardi Law has hosted expungment clinics and will be hosting two more as follows:
- Releaf Patient Appreciation Day, April 17 th ( Valrico )
- First Annual 4/20 Event ( St. Petersburg Beach )
At these clinics, an attorney will be present to review records and see if someone is eligible for a sealing or expungment of their records. As part of the events, Trulieve will be helping cover the costs for finger prints, legal fees, and court costs.
Trulieve is working with Minorities for Medical Marijuana (“M4MM”) to host a 4/20 Expungement Clinic, part of M4MM’s Project Clean Slate. This event will take place on Saturday, April 24, 2021 , from 9:30am – 4:30pm at Riviera Beach City Hall. Anyone seeking to take place in this event is required to register in advance at http://trulieve.cc/expungementpreregistration .
In addition, Trulieve is sponsoring the First Friday Series , a weekly virtual event from the Georgia Justice Project to help Georgia citizens with record restrictions, and is also sponsoring the Fellowship Presentation and Expungement Clinic being offered through CultivateEd and GBLS on Friday, April 23 from 3:00pm – 4:00pm . You can register for the Massachusetts expungement clinic in advance here: HTTPS://BIT.LY/2Q655KK
“Our mission as a company has always been to improve people’s lives,” said Trulieve CEO Kim Rivers . “We’ve always been dedicated to improving the communities we call home. Partnering with Minardi Law , Minorities for Medical Marijuana, Georgia Justice Project and CultivatED on these clinics was a simple decision for us; we encourage anyone seeking help with the expungement process to attend one of these clinics in your own state to start the process.”
For more information about Trulieve and the April expungment clinics, please visit www.Trulieve.com .
Trulieve is primarily a vertically integrated “seed-to-sale” company in the U.S. and is the first and largest fully licensed medical cannabis company in the State of Florida . Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the State of Florida , as well as directly to patients via home delivery. Trulieve also has operations in California , Massachusetts , Connecticut and Pennsylvania. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF.
To learn more about Trulieve, visit www.Trulieve.com .
SOURCE Trulieve Cannabis Corp.
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Seth Rogen’s New Cannabis Brand are Now Available at Apothecarium Dispensaries in San Francisco , Berkeley and Capitola
The Apothecarium is offering cannabis from Houseplant, the cannabis lifestyle brand founded by Seth Rogen and Evan Goldberg at its five California dispensaries. The Apothecarium has three San Francisco locations (Castro, SOMA and Marina ) and one each in Berkeley and Capitola (outside of Santa Cruz ).
“With the vast number of dispensaries in California , we put a lot of effort into identifying the right ones that align with Houseplant’s values,” said Seth Rogen , Co-Founder of Houseplant. “The Apothecarium shares the same commitment to creating a strong consumer experience that we pride ourselves on and we are thrilled to bring our three initial strains to their stores in the Bay Area.”
Houseplant is launching with three flower strains, all of which will be available at The Apothecarium, including: Diablo Wind (sativa), Pancake Ice (sativa) and Pink Moon (indica). Like their founder’s groundbreaking film “Pineapple Express”, Houseplant strains are named after weather phenomena. Each strain will be sold in a custom tin.
“We are so proud to be one of the very first dispensaries in California to offer Houseplant to our customers,” said Ryan Hudson , CEO and co-founder of The Apothecarium. “Seth, Evan and everyone at Houseplant love and respect cannabis as much as we do. We simply cannot wait to share their beautiful and delicious flowers with our guests.”
“We’ve been working with the Houseplant team for more than a year and are grateful to have a partner that shares so many of our values, including an emphasis on cannabis education, quality, reform of cannabis laws and beautifully designed, recyclable packaging.”
“Seth has been hands-on during the process, spending time with our store managers to make sure they know the products and how much care has gone into vetting and selecting the best strains. We think our guests are going to love Houseplant.”
About The Apothecarium
The Apothecarium is recognized as one of the nation’s premier cannabis dispensaries, with an emphasis on education via in-depth one-on-one consultations from highly trained cannabis consultants. The company was founded by three first cousins and two family friends in 2011. Our dispensaries are known for providing educational events that are open to the public at no cost — and for welcoming seniors, first-time dispensary visitors, and people with serious medical conditions. The Apothecarium’s flagship San Francisco dispensary was named the best-designed dispensary in the country by Architectural Digest . Patients and customers may order at our dispensaries or online for pickup or delivery at apothecarium.com [apothecarium.com] .
The Apothecarium is committed to giving back to the communities we serve. We have donated more than $400,000 in cash to community groups and nonprofits — plus more than $300,000 worth of in-kind donations.
All Apothecarium dispensaries continue to implement safety measures to protect guests and team members. Protocols include strict social distancing inside and outside the dispensaries, a mask requirement for everyone inside the dispensaries, no contact check-in procedures and ongoing sanitizing throughout the day.
CA Licenses: C10-0000523-LIC; C10-0000522-LIC; C10-0000515-LIC, C10-0000738-LIC, C10-0000706-LIC
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MISSISSAUGA, Ontario TheNewswire – April 16, 2021 Sire Bioscience Inc. (CSE:SIRE) (OTC:BLLXF) (FSE:BR1B) (CNSX:SIRE.CN) (“SIRE” or the “Company”) announces that Brian Nugent has resigned as a member of the Company’s board of directors (the “ Board ”). It has been a pleasure and a blessing to have worked with Brian Nugent over the past few years, his business acumen and tremendous experience will certainly be missed, SIRE wishes him nothing but the best in all his future endeavors.
About Sire Bioscience
SIRE is headquartered in Mississauga, Ontario with its wholly owned subsidiary PLANTFUEL® based in Denver, Colorado. SIRE is managed by a group of successful entrepreneurs who have extensive experience in the areas of consumer-packaged goods, manufacturing, logistics, and distribution. SIRE is a CPG life science company focused on the plant-based foods and supplements industry.
For additional information contact:
Sire Bioscience Inc.
Copyright (c) 2021 TheNewswire – All rights reserved.
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